Phoenix Expects Profitability

The second quarter remained challenging for Phoenix Footwear Group Inc., but the Carlsbad, Calif.-based company expects improved results in the future.
“In spite of the continued reduction in sales, we are encouraged by what we were able to accomplish during the quarter,” said Rusty Hall, the company’s CEO, in a statement. “We are seeing marked improvements in our future orders and sales trends. Combined with our cost reduction efforts, we believe the table has been set for a return to profitability.”
On Aug. 14, Phoenix reported a net loss of $5.1 million, or 63 cents a share, for the second quarter. Excluding charges for discontinued operations of $3 million, or 37 cents a share, the company’s second-quarter loss totaled $2.1 million, or 26 cents. That compares to a loss of $2.1 million, or 26 cents a share, in the year-ago quarter.
Sales for the three months ended July 4 dropped to $4 million, down from $6.2 million in the second quarter of 2008.
For the first half of the year, Phoenix reported a loss of $8.1 million, or 99 cents a share, versus a loss of $2.4 million, or 30 cents, in the first half of last year. Sales dropped 35 percent to $10.1 million for the period.

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